Renovation Products

Renovation Products

Home Renovation Loans

Have you thought about buying a fixer-upper? What about buying a home and upgrading? Always wanted a pool? Renovation loans are the type of loans you’re looking for. A renovation loan can help buyers obtain money to fix a property that can be rolled into one loan. Renovation loans allow you to buy the home as-is with monies set aside in escrow for your upgrades or repairs. Every home loan requires an appraisal. The appraiser will value the property as-is along with the purchase contract, estimated upgrades by a licensed contractor and will determine the future property value based on the completed upgrades presented.

Homebuyers can buy a house that is not new, make it almost new and personalize it. Most people purchase a home and years later refinance to upgrade that old kitchen. You don’t have wait with renovation loan.

CMF offers three different loan products with different features. Renovations are in two categories. One is cosmetic upgrades up to 35,000 and two are structural repairs up to 636,150 in Los Angeles County. This financing is also available for refinancing too. Renovation loans have slightly higher cost and generally a higher interest rate, but save you money by not having to refinancing later for the same renovations.

Some guideline parameters:

  • Purchase or refinance
  • Loan is based on the new value after repairs
  • 50% debt to income
  • 1 to 4 units
  • One general contractor allowed (Streamline 203K has a maximum of 3 licensed contractors)
  • Payment draws are after each inspection
  • 90 days to 180 days for completion depending on upgrades

Loan products available:

  • Streamline 203K up to $35,000 (cosmetic only)
  • Full 203K up to $636,150 (Los Angeles, based on county) (cosmetic or structural)
  • Home-Style up to $636,150 (Los Angeles, based on county) (cosmetic or structural)

Renovation categories:

  • Structural - things that have to be done (anything structural and/or any cost above $35,000)
  • Cosmetic - things that should be done (roof, water heater, furnace, windows, flooring, ect.)
  • Cosmetic - things you want to be done (re-paint, new kitchen, new appliances, mantel, ect.)

Call us today to see if a renovation loan is right for you. 877.915.3030